As of August 23, 2024, two stocks in the consumer staples sector could serve as a real warning to investors for whom momentum is an important criterion in their trading decisions.

The RSI is a momentum indicator that compares a stock’s strength on days when prices are up versus its strength on days when prices are down. When compared to a stock’s price action, it can give traders a better sense of how a stock might perform in the short term. According to Benzinga Pro, an asset is typically considered overbought when the RSI is above 70.

Here is the latest list of major overbought players in this sector.

Philip Morris International Inc. PM

• On July 23, Philip Morris International reported better-than-expected results for its second quarter of fiscal 2024 and raised its adjusted earnings per share forecast. The company reported 5.6% year-over-year growth to $9.468 billion in the second quarter, beating analysts’ consensus estimate of $9.183 billion. Jacek Olczak, Chief Executive Officer, said, “The excellent momentum of our smoke-free business continued with an outstanding performance in the second quarter and first half of the year.” The company’s stock gained about 10% over the past month, hitting a 52-week high of $120.21.
• RSI value: 76.14
• PM price promotion: Philip Morris International shares rose 0.1% to close at $120.10 on Thursday.

Walmart Inc WMT

• On August 22, Evercore ISI Group analyst Greg Melich maintained an outperform rating on Walmart and raised the price target to $80 from $78. The company’s stock gained about 7% over the past month, reaching a 52-week high of $76.22.
• RSI value: 75.34
• WMT price promotion: Walmart shares rose 0.5% on Thursday to close at $75.58.

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